Improving Child Care for Working Families Act of 2025

Raises the tax-free limit for employer-dependent care assistance to ease child care costs for working families. This bill would increase the Internal Revenue Code exclusion for amounts paid under a dependent care assistance program (section 129) from $7,500 to $10,500 and raise the separate-filer cap from $3,750 to $5,250. The change applies to amounts paid or incurred in calendar years beginning after the date of enactment.